Choice Hotels International Reports A 10% Increase In First Quarter Domestic RevPAR

New Executed Domestic Franchise Agreements Increase 68%

ROCKVILLE, Md., May 6, 2015 /PRNewswire/ -- Choice Hotels International, Inc. CHH today reported the following highlights for the first quarter 2015:

Choice Hotels International Logo chain

 

  • Revenues for the three months ended March 31, 2015 totaled $175.2 million, an increase of 10 percent from the same period of 2014.
  • Domestic hotel executed franchise agreements totaled 99 for the three months ended March 31, 2015, an increase of 68 percent from the same period of 2014.
  • Domestic relicensing and contract renewal transactions totaled 100 for the three months ended March 31, 2015, an increase of 20 percent from the same period of 2014.
  • The company's new construction domestic pipeline of hotels under construction or approved for development increased 36 percent from March 31, 2014, and the total pipeline increased 30 percent. The increase in the new construction hotel pipeline was led by the company's Comfort family of brands which increased 40 percent over the same period of the prior year.
  • Franchising revenues for the three months ended March 31, 2015, totaled $75.9 million, an increase of 8 percent from the same period of 2014.
  • Domestic royalty fees for the three months ended March 31, 2015, totaled $57.8 million, an increase of 9 percent from the same period of 2014.
  • Domestic system-wide revenue per available room ("RevPAR") increased 9.6 percent in the first quarter of 2015, as occupancy and average daily rates increased 300 basis points and 3.7 percent, respectively from the same period of 2014.
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA") from franchising activities for the three months ended March 31, 2015, totaled $48.9 million, an increase of 5 percent from the same period of 2014.
  • Diluted earnings per share ("EPS") from continuing operations for the three months ended March 31, 2015, totaled $0.37, an increase of 3 percent from the same period of 2014.
  • Domestic units increased 0.2 percent from March 31, 2014.

"Our effort to strengthen our brands and improve business delivery to our franchisees continues to be reflected in our operating results," said Stephen P. Joyce, president and chief executive officer, Choice Hotels. "Our first quarter RevPAR increase of nearly ten percent continued to outpace the gains reported by Smith Travel Research in the chain scale segments in which we compete. In addition, we believe that our focus on improving the quality of hotels within our franchise system has been a significant factor in the more than 20 percent increase in execution of domestic new construction franchise agreements and nearly 70 percent increase in overall domestic franchise agreements.  We continue to be optimistic that our focus on these initiatives will allow us to build on our strong first quarter RevPAR and franchise development performance."

Discontinued Operations

During 2014, the company entered into and completed a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the disposal of these hotels met the definition of a discontinued operation since the operations and cash flows of these components have been eliminated from the on-going operations of the company and the company does not have significant continuing involvement in the operations of the hotels after the disposal transaction. As a result, the company's consolidated statement of income for the three months ended March 31, 2014, reflects these three company-owned hotels as discontinued operations.

Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.                  

Outlook

The company's consolidated 2015 outlook reflects the following assumptions:

  • All figures assume no repurchases of common stock under the company's share repurchase program; and
  • The effective tax rate for continuing operations is expected to be approximately 32% and 31% for the second quarter and full-year 2015, respectively.

Franchising

  • EBITDA from franchising activities for full-year 2015 are expected to range between $254 million and $259 million;
  • Net domestic unit growth for 2015 is expected to be approximately 1%;
  • RevPAR is expected to increase approximately 7% for the second quarter and range between 6.5% and 8% for full-year 2015; and
  • The effective royalty rate is expected to increase 2 basis points for full-year 2015 as compared to full-year 2014.

SkyTouch

  • Net reductions in EBITDA relating to our investment in the SkyTouch division for full-year 2015 are expected to range between $15 million and $20 million.

Consolidated Outlook

The company's second quarter 2015 diluted EPS is expected to be $0.58. The company expects full-year 2015 diluted EPS to range between $2.14 and $2.21. EBITDA for full-year 2015 are expected to range between $236 million and $241 million.

Conference Call

Choice will conduct a conference call on Wednesday, May 6, 2015 at 10:00 a.m. EDT to discuss the company's first quarter 2015 results. The dial-in number to listen to the call is 1-855-766-6521, and the access code is 22622046. International callers should dial 1-920-663-6286 and enter the access code 22622046.  The conference call also will be webcast simultaneously via the company's website, www.choicehotels.com.  Interested investors and other parties wishing to access the call via the webcast should go to the website and click on the Investor Info link.  The Investor page will feature a conference call microphone icon to access the call.

The call will be recorded and available for replay beginning at 2:00 p.m. EDT on Wednesday, May 6, 2015 through Wednesday, May 13, 2015 by calling 1-855-859-2056 and entering access code 22622046. The international dial-in number for the replay is 1-404-537-3406 and the access code is 22622046. In addition, the call will be archived for approximately one-year and available on www.choicehotels.com via the Investor Info link.

About Choice Hotels

Choice Hotels International, Inc.® CHH is one of the world's largest lodging companies. With more than 6,300 hotels franchised in more than 35 countries and territories, we represent more than 500,000 rooms around the globe. As of March 31, 2015, 615 hotels were in our development pipeline. Our company's Ascend Hotel Collection®, Cambria® hotels & suites, Comfort Inn®, Comfort Suites®, Sleep Inn®, Quality®, Clarion®, MainStay Suites®, Suburban Extended Stay Hotel®, Econo Lodge® and Rodeway Inn® brands provide a spectrum of lodging choices to meet our guests' needs. With more than 22 million members and counting, check out our Choice Privileges® rewards program to see how you can reap the benefits of being a member of the Choice Hotels® family. Visit us at www.choicehotels.com for more information.

SkyTouch Technology® is a business division of Choice Hotels that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company.

Additional corporate information can be found on the Choice Hotels International, Inc. web site, which may be accessed at www.choicehotels.com.

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Generally, our use of words such as "expect," "estimate," "believe," "anticipate," "should,"  "will," "forecast," "plan,"  "project," "assume" or similar words of futurity identify such forward-looking statements.  These forward-looking statements are based on management's current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to management.  Such statements may relate to projections of the company's revenue, earnings and other financial and operational measures, company debt levels, ability to repay outstanding indebtedness, payment of dividends, repurchases of common stock and future operations, among other matters.   We caution you not to place undue reliance on any such forward-looking statements.  Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors.

Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements.  Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions;  foreign currency fluctuations; operating risks common in the lodging and franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees; our ability to keep pace with improvements in technology utilized for marketing and reservations systems and other operating systems; or ability to grow our franchise system; exposure to risks related to development activities; fluctuations in the supply and demand for hotels rooms; the level of acceptance of alternative growth strategies we may implement; operating risks associated with our international operations; the outcome of litigation; and our ability to manage our indebtedness.  These and other risk factors are discussed in detail in the company's filings with the Securities and Exchange Commission including our annual reports on Form 10-K and our quarterly reports filed on Form 10-Q.  We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Statement Concerning Non-GAAP Financial Measurements Presented in this Press Release

EBITDA, franchising revenues, franchising SG&A, EBITDA from franchising activities and franchising margins are non-GAAP financial measurements.  These measures should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by generally accepted accounting principles in the United States ("GAAP"), such as operating income, total revenues and operating margins.  The company's calculation of these measurements may be different from the calculations used by other companies and therefore comparability may be limited.  The company has included an exhibit accompanying this release that reconciles EBITDA, franchising revenues, franchising SG&A and franchising margins to the most comparable GAAP financial measures. We discuss management's reasons for reporting these non-GAAP measures below.

Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA reflects income from continuing operations excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, other (gains) and losses and equity in net income of unconsolidated affiliates. We consider EBITDA to be an indicator of operating performance because we use it to measure our ability to service debt, fund capital expenditures, and expand our business. We also use EBITDA, as do analysts, lenders, investors and others, to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.

Franchising Revenues, Operating Income, EBITDA, SG&A and Margins:  The company reports franchising revenues, operating income, EBITDA, SG&A and margins which exclude marketing and reservation revenues, the SkyTouch Technology operations and revenue generated from the ownership of an office building that is leased to a third-party.  Marketing and reservation activities are excluded since the company is required by its franchise agreements to use the fees collected for marketing and reservation activities; as such, no income or loss to the company is generated. Cumulative marketing and reservation system fees not expended are recorded as a liability in the company's financial statements and are carried over to the next year and expended in accordance with the franchise agreements. Cumulative marketing and reservation expenditures in excess of fees collected for marketing and reservation activities are deferred and recorded as an asset in the company's financial statements and recovered in future periods.  SkyTouch Technology is a division of the company that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company. The operations for SkyTouch Technology are excluded since they do not reflect the company's core franchising business but are an adjacent, complimentary line of business. These non-GAAP measures are a commonly used measure of performance in our industry and facilitate comparisons between the company and its competitors.

Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria hotels & suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, Rodeway Inn, Ascend Hotel Collection and SkyTouch Technology are proprietary trademarks and service marks of Choice Hotels International and its subsidiaries.

© 2015 Choice Hotels International, Inc.  All rights reserved.

Choice Hotels International, Inc.








Exhibit 1

Consolidated Statements of Income









(Unaudited)




































Three Months Ended March 31,







Variance



2015


2014


$


%

(In thousands, except per share amounts)


















REVENUES:


















Royalty fees


$            62,431


$            58,540


$       3,891


7%

Initial franchise and relicensing fees


5,717


3,740


1,977


53%

Procurement services


4,807


4,778


29


1%

Marketing and reservation 


98,713


89,606


9,107


10%

Other


3,577


3,072


505


16%

      Total revenues


175,245


159,736


15,509


10%










OPERATING EXPENSES:


















Selling, general and administrative


32,438


26,680


5,758


22%

Depreciation and amortization


2,690


2,278


412


18%

Marketing and reservation


98,713


89,606


9,107


10%

Total operating expenses


133,841


118,564


15,277


13%










Operating income


41,404


41,172


232


1%










OTHER INCOME AND EXPENSES, NET:









Interest expense


10,179


10,171


8


0%

Interest income


(346)


(503)


157


(31%)

Other (gains) and losses


(468)


(59)


(409)


693%

Equity in net loss of affiliates


1,005


35


970


2771%

Total other income and expenses, net


10,370


9,644


726


8%










Income from continuing operations before income taxes


31,034


31,528


(494)


(2%)

Income taxes


9,440


10,059


(619)


(6%)

Income from continuing operations, net of income taxes


21,594


21,469


125


1%

Income from discontinued operations, net of income taxes


-


1,641


(1,641)


(100%)

Net income


$            21,594


$            23,110


$      (1,516)


(7%)



















Basic earnings per share









Continuing operations


$                0.38


$                0.37


$        0.01


3%

Discontinued operations


-


0.03


(0.03)


(100%)



$                0.38


$                0.40


$       (0.02)


(5%)



















Diluted earnings per share









Continuing operations


$                0.37


$                0.36


$        0.01


3%

Discontinued operations


-


0.03


(0.03)


(100%)



$                0.37


$                0.39


$       (0.02)


(5%)

 

 

Choice Hotels International, Inc.




Exhibit 2

Consolidated Balance Sheets





















(In thousands, except per share amounts)

 March 31 


 December 31, 






2015


2014






(Unaudited)











ASSETS















Cash and cash equivalents



$           200,544


$         214,879

Accounts receivable, net



102,013


91,681

Other current assets



54,715


44,854


Total current assets



357,272


351,414









Fixed assets and intangibles, net


153,870


152,034

Notes receivable, net of allowances


48,781


40,441

Investments, employee benefit plans, at fair value

17,916


17,539

Other assets




83,283


85,842











Total assets


$           661,122


$         647,270

























LIABILITIES AND SHAREHOLDERS' DEFICIT












Accounts payable and accrued expenses

$              94,045


$         120,654

Deferred revenue



73,908


66,382

Current portion of long-term debt


12,362


12,349

Other current liabilities



1,573


713


Total current liabilities


181,888


200,098









Long-term debt



799,628


782,082

Deferred compensation & retirement plan obligations  

24,259


23,987

Other liabilities




68,840


69,904










Total liabilities



1,074,615


1,076,071









Common stock, $0.01 par value


576


573

Additional paid-in-capital



131,711


127,661

Accumulated other comprehensive loss

(8,203)


(6,971)

Treasury stock, at cost



(979,828)


(982,463)

Retained earnings



442,251


432,399


Total shareholders' deficit


(413,493)


(428,801)











Total liabilities and shareholders' deficit

$           661,122


$         647,270

 

 

Choice Hotels International, Inc.



Exhibit 3

Consolidated Statements of Cash Flows




(Unaudited)














(In thousands)

Three Months Ended March 31,






2015


2014

CASH FLOWS FROM OPERATING ACTIVITIES:








Net income

$                    21,594


$              23,110





Adjustments to reconcile net income to net cash provided 




 by operating activities:




  Depreciation and amortization  

2,690


2,278

  Gain on sale of assets

(292)


(2,572)

  Provision for bad debts, net

823


1,399

  Non-cash stock compensation and other charges

2,509


2,875

  Non-cash interest and other (income) loss

506


416

  Deferred income taxes

(233)


2,344

  Equity (earnings) losses from unconsolidated joint ventures, net of distributions received

1,205


216





Changes in assets and liabilities:




  Receivables

(11,624)


(19,931)

  Advances to/from marketing and reservation activities, net

4,626


10,903

  Forgivable notes receivable, net

(13,371)


(3,623)

  Accounts payable

(1,152)


2,080

  Accrued expenses

(24,052)


(19,861)

  Income taxes payable/receivable

2,773


3,160

  Deferred revenue

7,552


7,932

  Other assets

(9,826)


(3,103)

  Other liabilities

437


(2,359)





 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 

(15,835)


5,264





CASH FLOWS FROM INVESTING ACTIVITIES:








Investment in property and equipment

(6,804)


(3,015)

Proceeds from sales of assets

1,592


8,703

Equity method investments

(1,921)


(3,379)

Purchases of investments, employee benefit plans

(1,089)


(890)

Proceeds from sales of investments, employee benefit plans

925


281

Issuance of mezzanine and other notes receivable

-


(587)

Collections of mezzanine and other notes receivable

105


68

Other items, net

(77)


(154)





 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 

(7,269)


1,027





CASH FLOWS FROM FINANCING ACTIVITIES:








Net borrowings pursuant to revolving credit facility

20,700


15,000

Principal payments on long-term debt

(3,082)


(2,052)

Purchase of treasury stock

(6,227)


(4,530)

Dividends paid

(11,710)


(10,784)

Excess tax benefits from stock-based compensation

4,473


1,024

Proceeds from exercise of stock options

5,619


1,547





 NET CASH PROVIDED BY FINANCING ACTIVITIES

9,773


205





Net change in cash and cash equivalents

(13,331)


6,496

Effect of foreign exchange rate changes on cash and cash equivalents

(1,004)


587

Cash and cash equivalents at beginning of period

214,879


167,795





CASH AND CASH EQUIVALENTS AT END OF PERIOD

$                  200,544


$            174,878

 

 

CHOICE HOTELS INTERNATIONAL, INC.

Exhibit 4

SUPPLEMENTAL OPERATING INFORMATION 


DOMESTIC HOTEL SYSTEM


(UNAUDITED)




























































































For the Three Months Ended March 31, 2015


For the Three Months Ended March 31, 2014


Change



























Average Daily






Average Daily






Average Daily










Rate


Occupancy


RevPAR


Rate


Occupancy


RevPAR


Rate


Occupancy


RevPAR

























Comfort Inn


$             82.90


57.4%


$          47.55


$             79.22


54.8%


$         43.40


4.6%


260

bps


9.6%



Comfort Suites


90.12


64.4%


58.02


86.84


60.8%


52.84


3.8%


360

bps


9.8%



Sleep


76.44


59.5%


45.48


72.87


55.6%


40.49


4.9%


390

bps


12.3%



Quality


70.18


52.6%


36.93


67.53


49.6%


33.50


3.9%


300

bps


10.2%



Clarion


75.30


51.5%


38.74


70.95


48.8%


34.61


6.1%


270

bps


11.9%



Econo Lodge


54.41


47.9%


26.06


52.67


44.3%


23.32


3.3%


360

bps


11.7%



Rodeway


53.85


52.7%


28.40


51.21


49.4%


25.32


5.2%


330

bps


12.2%



MainStay


73.58


66.4%


48.85


70.76


64.8%


45.83


4.0%


160

bps


6.6%



Suburban


46.48


74.1%


34.42


43.23


70.3%


30.38


7.5%


380

bps


13.3%



Ascend Hotel Collection


113.19


60.8%


68.79


111.34


58.2%


64.75


1.7%


260

bps


6.2%

























Total 


$             74.59


55.7%


$          41.57


$             71.94


52.7%


$         37.92


3.7%


300

bps


9.6%









































































































































For the Quarter Ended


















March 31, 2015


March 31, 2014








































System-wide effective royalty rate


4.31%


4.33%


















 

 

CHOICE HOTELS INTERNATIONAL, INC.

Exhibit 5

SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA


(UNAUDITED)


























































March 31, 2015


March 31, 2014


Variance






















Hotels


Rooms


Hotels


Rooms


Hotels


Rooms


%


%




















Comfort Inn


1,234


95,281


1,297


101,099


(63)


(5,818)


(4.9%)


(5.8%)


Comfort Suites


576


44,519


590


45,609


(14)


(1,090)


(2.4%)


(2.4%)


Sleep


368


26,533


381


27,517


(13)


(984)


(3.4%)


(3.6%)


Quality


1,292


104,654


1,236


102,327


56


2,327


4.5%


2.3%


Clarion


180


25,380


191


27,393


(11)


(2,013)


(5.8%)


(7.3%)


Econo Lodge


853


52,602


840


51,544


13


1,058


1.5%


2.1%


Rodeway


475


26,158


449


25,077


26


1,081


5.8%


4.3%


MainStay


46


3,571


43


3,329


3


242


7.0%


7.3%


Suburban


63


7,048


63


7,152


-


(104)


0.0%


(1.5%)


Ascend Hotel Collection


110


9,405


103


9,251


7


154


6.8%


1.7%


Cambria hotel & suites


22


2,642


18


2,119


4


523


22.2%


24.7%




















Domestic Franchises


5,219


397,793


5,211


402,417


8


(4,624)


0.2%


(1.1%)




















International Franchises


1,143


105,498


1,153


104,735


(10)


763


(0.9%)


0.7%




















Total Franchises


6,362


503,291


6,364


507,152


(2)


(3,861)


(0.0%)


(0.8%)


 

 



















Exhibit 6


CHOICE HOTELS INTERNATIONAL, INC.

SUPPLEMENTAL INFORMATION BY BRAND

DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS

(UNAUDITED)



















































































For the Three Months Ended March 31, 2015


For the Three Months Ended March 31, 2014


% Change
























New






New






New








Construction


Conversion


Total


Construction


Conversion


Total


Construction


Conversion


Total






















Comfort Inn


4


7


11


3


3


6


33%


133%


83%


Comfort Suites


5


2


7


1


-


1


400%


NM


600%


Sleep


5


-


5


4


-


4


25%


NM


25%


Quality


2


29


31


1


10


11


100%


190%


182%


Clarion


-


3


3


-


2


2


NM


50%


50%


Econo Lodge


-


9


9


-


6


6


NM


50%


50%


Rodeway


-


14


14


1


15


16


(100%)


(7%)


(13%)


MainStay


4


-


4


4


-


4


0%


NM


0%


Suburban


-


2


2


1


1


2


(100%)


100%


0%


Ascend Hotel Collection


1


10


11


3


3


6


(67%)


233%


83%


Cambria  hotel & suites


2


-


2


1


-


1


100%


NM


100%






















Total Domestic System


23


76


99


19


40


59


21%


90%


68%


 

 























Exhibit 7



CHOICE HOTELS INTERNATIONAL, INC.

DOMESTIC PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT

(UNAUDITED)


























A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors.









































































Variance



March 31, 2015
Units


March 31, 2014
Units


Conversion


New Construction


Total



Conversion


New Construction


Total


Conversion


New Construction


Total


Units


%


Units


%


Units


%


























Comfort Inn


33


62


95


39


51


90


(6)


(15%)


11


22%


5


6%

Comfort Suites


3


74


77


2


46


48


1


50%


28


61%


29


60%

Sleep Inn


2


73


75


1


48


49


1


100%


25


52%


26


53%

Quality


54


6


60


38


4


42


16


42%


2


50%


18


43%

Clarion


10


2


12


6


2


8


4


67%


-


0%


4


50%

Econo Lodge


28


4


32


20


2


22


8


40%


2


100%


10


45%

Rodeway


34


3


37


33


2


35


1


3%


1


50%


2


6%

MainStay


1


47


48


2


35


37


(1)


(50%)


12


34%


11


30%

Suburban


6


12


18


6


17


23


-


0%


(5)


(29%)


(5)


(22%)

Ascend Hotel Collection


22


20


42


11


12


23


11


100%


8


67%


19


83%

Cambria hotel & suites


-


23


23


-


21


21


-


NM


2


10%


2


10%




























193


326


519


158


240


398


35


22%


86


36%


121


30%

 

 


CHOICE HOTELS INTERNATIONAL, INC.

Exhibit 8




SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION






(UNAUDITED)
















CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS



















(dollar amounts in thousands)


Three Months Ended March 31, 




















2015


2014







Franchising Revenues:






















Total Revenues


$              175,245


$               159,736







Adjustments:











     Marketing and reservation revenues


(98,713)


(89,606)







     SkyTouch & Other


(603)


(53)







Franchising Revenues


$                75,929


$                 70,077


















Franchising Margins:






















Operating Margin:






















Total Revenues


$              175,245


$               159,736







Operating Income


$                41,404


$                 41,172







     Operating Margin


23.6%


25.8%


















Franchising Margin:






















Franchising Revenues


$                75,929


$                 70,077


















Operating Income


$                41,404


$                 41,172







Non-franchising activities operating loss


5,201


3,506









$                46,605


$                 44,678


















     Franchising Margins


61.4%


63.8%







































CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES

















(dollar amounts in thousands)


Three Months Ended March 31, 




















2015


2014


















Total Selling, General and Administrative Expenses


$                32,438


$                 26,680







SkyTouch & other


(5,395)


(3,336)







Franchising Selling, General and Administration Expenses


$                27,043


$                 23,344







































CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")















(dollar amounts in thousands)













Three Months Ended March 31, 


















2015


2014

















Income from continuing operations, net of income taxes


$                21,594


$                 21,469







Income taxes


9,440


10,059







Interest expense


10,179


10,171







Interest income


(346)


(503)







Other (gains) and losses


(468)


(59)







Equity in net loss of affiliates


1,005


35







Depreciation and amortization


2,690


2,278






EBITDA


$                44,094


$                 43,450

















Franchising 


$                48,886


$                 46,733






SkyTouch & other


(4,792)


(3,283)









$                44,094


$                 43,450






 

 


CHOICE HOTELS INTERNATIONAL, INC.


Exhibit 9


DISCONTINUED OPERATIONS




(UNAUDITED)

































Three Months Ended March 31,













(In thousands)


2015


2014













REVENUES:








Hotel operations


$                       -


$                      690




      Total revenues


-


690













OPERATING EXPENSES:








Hotel operations


-


662




Total operating expenses


-


662













Operating income 


-


28













Gain on disposal of discontinued operations


-


2,581













Income from discontinued operations before income taxes


-


2,609




Income tax 


-


968




Income from discontinued operations


$                       -


$                   1,641




 

Logo - http://photos.prnewswire.com/prnh/20140807/134515

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/choice-hotels-international-reports-a-10-increase-in-first-quarter-domestic-revpar-300078182.html

SOURCE Choice Hotels International, Inc.

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